Intel today announced plans to invest $20 billion to construct two new semiconductor chip factories in Ohio as the United States continues to grapple with a shortage of critical electronic components.
The new Intel manufacturing hub will sit on a 1,000-acre plot of land in Licking County near Columbus, Ohio and is expected to be operational by 2025. Intel also has the option of expanding the site to 2,000 acres and building up to eight chip factories in the region.
Intel CEO Pat Gelsinger said this week’s announcement “marks another significant way Intel is leading the effort to restore U.S. semiconductor manufacturing leadership.”
“Intel’s actions will help build a more resilient supply chain and ensure reliable access to advanced semiconductors for years to come,” Gelsinger said.
Intel said the $20 billion commitment is “the largest single private-sector investment in Ohio history.” The chip plants will create roughly 3,000 Intel jobs and 7,000 construction jobs over the course of the build, and will also support “tens of thousands of additional local long-term jobs across a broad ecosystem of suppliers and partners.”
While it’s currently not clear if the Intel plant will directly serve the automotive industry, the plant should help free up the supply chain backlog of semiconductor chips once it’s operational. Construction on the site is expected to begin in 2022 and will be complete in 2025.
The Ohio site is the first new manufacturing site constructed by Intel in more than 40 years. The manufacturing hub will also attract other suppliers and contractors to the region, with Air Products, Applied Materials, LAM Research and Ultra Clean Technology indicating they will also establish a physical presence in the region to support the buildout of the new Intel site.
Keyvan Esfarjani, Intel senior vice president of Manufacturing, Supply Chain and Operations, likened the construction of a large new chip fab such as this to building a small town or city.
“A semiconductor factory is not like other factories,” Esfarjani said. “Building this semiconductor mega-site is akin to building a small city, which brings forth a vibrant community of supporting services and suppliers. Ohio is an ideal location for Intel’s U.S. expansion because of its access to top talent, robust existing infrastructure, and long history as a manufacturing powerhouse.”
Gelsinger appeared at the White House on Friday alongside President Joe Biden to announce the major $20 billion investment.